Debt crisis: Murcia could request €700m from Spanish government [Telegraph]


Spain’s Murcia region could request up to €700m (£550m) from the central government to keep it afloat, amid growing concern over the state of the regions’ finances.

Spain’s Murcia region could request up to €700m (£550m) from the central government to keep it afloat, amid growing concern over the state of the regions’ finances.

The tiny autonomous region, home to 1.4m people, on Spain’s southeastern coast announced last month that it would seek a bail out from an €18bn special fund set up by Madrid to help its indebted regions.

Juan Bernal, the Economy minister of Murcia’s regional government, said at the weekend that his region would at first seek around €300m, possibly as soon as September, to help meet outstanding debts.

It may then request a further €400m to help fund loans maturing in December.

Spain’s indebted autonomous regions have been locked out of international debt markets and are struggling to refinance around €36bn euros in total debt this year.

Murcia became the second of Spain’s 17 regions to indicate that it will seek funding, following the path of Valencia, which is estimated to need up to €3.5bn euros from the fund.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 4,933 other followers

%d bloggers like this: